Goods on consignment:

1- Are goods shipped by the owner to the consignee who sells the goods for the owner.

2- Are reported in the consignee's books as inventory.

3- Are goods shipped to the consignor who sells the goods for the owner.

4- Are not reported in the consignor's inventory since they do not have possession of the inventory.

5- Are always paid for by the consignee when they take possession of the goods.